Castrol India's Q2 profit rises on sustained demand
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Engine oil maker Castrol India reported a 3.1% increase in second-quarter profit on Thursday as the continuing rise in vehicle sales boosted its mainstay business of automobile lubricants and helped offset the rise in costs.
The company, 51% owned by oil major BP, said profit after tax rose to 2.32 billion rupees ($27.7 million) in the April-June quarter, from 2.25 billion rupees a year ago.
India's two-wheeler sales, which have been rising for three straight quarters, grew 20.4% in the latest quarter, while commercial vehicle sales grew 3.5%.
Castrol said in early May that the automobile lubricants market, which accounts for more than 80% of its revenue, is growing at about 4%-5% in the country.
The company, which also makes industrial lubricants like turbine oils, said total revenue from operations grew 4.8% to 13.98 billion rupees in the quarter.
The results were also helped by product launches such as the 'Castrol EDGE' range, Managing Director Sandeep Sangwan said in a statement.
Total expenses grew 5.4%. The cost of raw materials and packing, which accounts for the bulk of expenses, increased by 6.6%.
Castrol India's shares closed 1.1% higher ahead of its results. They have risen 51% so far this year, while those of smaller peer Gulf Oil Lubricants India have jumped 70.4%. ($1 = 83.6900 Indian rupees)
